Trusts may assist you in maintaining your privacy since they do not necessarily become public records.<\/span><\/li>\n<\/ul>\nCertain kinds of trusts permit the transfer of assets out of an estate, resulting in significant savings in estate and gift taxes for the beneficiaries.<\/span><\/p>\n\n- Protect Your Assets From Creditors:<\/b> Moving assets out of your estate may have a similar effect to transferring assets into your estate in terms of limiting creditors’ access to them and shielding them from judgments against you, similar to the tax advantage benefit.<\/span><\/li>\n
- Inheritance and Distribution of Assets: <\/b>By defining the rules of your trust, you may choose who will inherit your assets and when they will be distributed when you die.<\/span><\/li>\n
- Children as Beneficiaries:<\/b> If you want to designate your children as beneficiaries of your life insurance policy, you may do so via the use of a trust.<\/span><\/li>\n<\/ul>\n
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<\/span>Requirements for creating a trust<\/b><\/span><\/h2>\nA trust must fulfill three requirements, collectively referred to as “the three certainties,” to be lawfully and legally established:<\/span><\/p>\n <\/p>\n
<\/span>Confidence in One’s Intention<\/b><\/span><\/h3>\nFor the trust to be valid, the settlor must expressly state that he wanted to establish a trust and transfer trust assets to the trustee, who would then retain the assets on behalf of the beneficiaries.<\/span><\/p>\n <\/p>\n
<\/span>Confidence in the subject matter<\/b><\/span><\/h3>\nUnambiguous identification of the property that forms part of the trust is required for the trust to be legal. The trustee must be able to identify with certainty the property that he is to hold on behalf of the beneficiaries to be effective.<\/span><\/p>\n